Often used in risk arbitrage. firm chosen as an attractive takeover candidate by a potential acquirer. The acquirer may buy up to 5% of the target's stock without public disclosure, but it must report all transactions and supply other information to the SEC, the exchange the target company is listed on, and the target company itself once the 5% threshold is hit. See: Raider. Bloomberg Financial Dictionary
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The company that is going to be acquired by another company. London Stock Exchange Glossary
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target company UK US noun [C] FINANCE
► a company that another company wants to buy: »
The takeover bid is opposed by the board of the target company.
Financial and business terms. 2012.